Twitter Inc disappointed investors yet again with first-quarter results that showed stagnant revenue growth as the microblogging service struggles to grab new users amid efforts to improve its complicated interface with several new features.
Twitter shares plunged 13.6 percent to $15.34 in late trade on Tuesday after reporting lower-than-expected revenue, hurt by weaker than expected spending by big advertisers, and providing a current-quarter revenue forecast well below analysts’ expectations.
Twitter’s user base grew modestly to 310 million monthly active users in the quarter ended March 31 from 305 million in the fourth quarter, above analysts’ expectations. But investors were let down by the revenue miss since outlining a turnaround plan.
“It’s obvious Twitter is having trouble,” said Arvind Bhatia, analyst with CRT Capital. “It’s not growing anywhere close to where people expected a while back.”
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